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Country Brief

Bahrain is considered as one of the most open economies in the Middle East and North Africa region. The country has put great efforts in diversifying its economy. Its highly developed communication and transport facilities make Bahrain home to numerous multinational firms in the Gulf. With good infrastructure, several free trade agreements and strong financial institutions Bahrain is well positioned to offer a variety of incentives to investors keen on accessing both international and regional markets.

As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the United States of America in August 2006, the first FTA between the USA and a Gulf state. Bahrain's trade balance relies on adding value to imported raw materials and on exporting refined hydrocarbons products and aluminium earnings. A large share of exports consists of petroleum products made from imported crude. Bahrain also has substantial aluminium production. Some of the trading partners of Bahrain include Saudi Arabia, India, UAE, South Korea, USA, China and Japan.

Bahrain is a member of the World Trade Organisation (since 1995) and the Gulf Co-operation Council. Bahrain has bilateral trade and economic agreements with over 40 countries, including: China, France, India, Singapore, the United Kingdom, the USA, and the 17 Arab states party to the Greater Arab Free Trade Agreement.